Brand new products are auctioned online starting at $0.01 and its price will increase by a penny by each bid. Revenue is generated by selling the bidders the credit to place bids.
All bid credits are prepaid; therefore, all transactions are paid in full in advance, no accounts receivables to worry about.
Penny auctions are becoming more popular and there is a large market to be captured. Specialty products set this penny auction aside from others.